Corporate Governance: Case Study: Galatasaray

1591 Words7 Pages
CORPORATE GOVERNANCE

FAILURE

“BAN FROM UEFA-GALATASARAY”

Emir Entetik-0053323

MGMT 512- Corporate Governance

Exam 1

Professor: Aymelek Kozikoğlu

28/05/2017

When someone pronounce “Galatasaray”, the first thing that comes to mind is a “Sports

Club”. Having taken its roots from the Galatasaray High School (Mektebi Sultan),

“Galatasaray” is both the leading educational institution and the sports club in Turkey.

Established in 1481, Galatasaray High School (Mektebi Sultan) is the oldest high school in

Turkey and the second-oldest Turkish educational institution. Since its first establishment,

Galatasaray has trained many scholars, attorneys, artists, statesmen,
…show more content…
Problem:

Mentioned earlier, general assembly elects the board every three years, hence, whoever

takes the office comes with different vision, mission and financial management plan, which

makes financial failure inevitable. Some boards are dovish and others are hawkish, some,

implement expansionary financial management policy, others implement contractionary

financial management policy, which as a result unbalance the club’s financial structure every

three years. For this reason, neither Unal Aysal nor Dursun Ozbek should be fully blamed

for the mentioned ban. This ban is a result of mismanagement of the club’s financial

resources by all of the boards who have taken into office since 1995, which implies that

there is something wrong with the club’s corporate governance policy. This is completely a

corporate governance issue.

Solution:

The ultimate solution for preventing the health of the club’s financial health is to assign

financial department to the club independent from the boards who can assist the boards with

financial matters. This department will implement limitations to the boards, establish yearly

budgets, therefore, function as a finance department of the club, and shall not change

    More about Corporate Governance: Case Study: Galatasaray

      Get Access